Outstanding credit of all scheduled banks collectively declined by a lesser quantum in the reporting fortnight ended April 23, 2021 as compared to the corresponding fortnight year ago, according to Reserve Bank of India data.
The outstanding credit of all scheduled banks declined by ₹30,208 crore in the reporting fortnight against a ₹72,085 crore fall in the year go fortnight.
State Bank of India’s economic research report “Ecowrap” observed that the credit decline in April reduced in the last two years.
“It is well known that both deposits and credit of all the banks always decline in April, as banks mobilise/ disburse more in the last fortnight of the financial year to meet the year end targets
“…It seems the demand for credit has increased much more due to pandemic,” the report said.
Bank deposits in the reporting fortnight declined substantially (by ₹80,154 crore) against decline of only ₹732 crore in the year ago fortnight.